There is a lot of talk about the economy recovering but many people are still suffering under a crippling amount of debt. People had to do things like pay bills using their credit cards and borrow against their homes to stay afloat. Once you are that deeply in debt, the only solution may be a personal bankruptcy.
A personal bankruptcy can help if you are overwhelmed with:
- Credit card debts
- Unpaid medical bills
- Car loans
- Overdue mortgage payments
- Creditor harassment
- Wage garnishment
- Foreclosure proceedings
- Repossession attempts
If you are experiencing any of these then you should contact one of the experienced bankruptcy attorneys at C. Golden & Associates to learn more about Chapter 7 bankruptcy.
Chapter 7 is one of the most popular forms of bankruptcy and it is available to anyone that can pass the “Means Test”. The means test determines whether or not you meet the criteria required by law for your total debt, assets, income and family size. It can be a complex process to attempt on your own so the assistance of a bankruptcy attorney is vital to your success. Many people fail to qualify for Chapter 7 because of simple mistakes like typos and missed deadlines.
Once you have qualified for Chapter 7 and your filing has begun, an Automatic Stay will come into effect. The Automatic Stay is the most important protection given by a bankruptcy because it can:
- Stop debt collection activities and harassment by your creditors
- Put a hold on wage garnishment for the duration of the bankruptcy
- Stop a home foreclosure for the duration of the bankruptcy. This will give you time to get your financial situation in order while still residing in your home without any mortgage payments.
- Stop repossession of your car for the duration of the bankruptcy. This often gives you the time you need to work out a deal that will allow you to keep your car.